Logicor closes €536m purchase of Immofinanz logistics assets

Blackstone’s European logistics arm Logicor has finalised the acquisition of Immofinanz's 1 million m2 portfolio logistics property platform for €536 mln.

The transaction is based on a total property value of €536 mln, less outstanding construction costs of €28 mln for the three development projects. This reflects the value of the properties as of 31 July 2015.

The deal leads to net cash inflows to Immofinanz after the repayment of loans of €305 mln.

The portfolio includes 36 completed assets offering 1 million m2 of rentable space in Germany (24 properties), Hungary (5), Romania (3), Poland (2), Slovakia (1) and Russia (1), as well as three development projects with 65,000 m2 currently under construction in Hamburg and in the Romanian cities of Bucharest and Ploiesti.

The Austrian property group confirmed in August last year that it was in talks to sell its logistics portfolio as part of a strategic reorientation to concentrate on the office and retail property sectors. Immofinanz entered the logistics business in 1991.

'With this sale, we have completed the reorientation of Immofinanz to focus exclusively on the retail and office commercial asset classes. The funds generated by the sale will strengthen our balance sheet and will be invested in the expansion of our high-quality office portfolio in Germany by 2018,' commented Oliver Schumy, CEO of Immofinanz.

Proceeds will be re-invested in the expansion of the company’s German portfolio, which is planned to grow to nearly 200,000 m2 of rentable space by mid-2018 after completion of the office development projects currently in progress, Schumy added.